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President Obama shakes hands with House Speaker John Boehner (R-Ohio). Obama pledged to find a compromise that will prevent the U.S. from toppling over the fiscal cliff. (Photo credit: Wikipedia)

Stocks trimmed early gains this afternoon soon after President Obama struck a diplomatic tone about solving the fiscal cliff. That investors quickly took flight suggests a marked wariness about any Washington, D.C. promises about the nation's fiscal problems.

Obama reaffirmed his belief that the U.S. should raise taxes on wealthier Americans to help pay for federal programs. But any solution, the president says, would need a mix of spending cuts and revenue increases. Obama then called on Congress to immediately extend the middle class tax cuts that could soon expire.

Significantly, the president stressed that he was willing to work with House Republicans to strike a deal: "I'm not wedded to every detail of my plan. I'm open to compromise."

If politicians don't work out a deal by year's end, the fiscal cliff threatens to trigger a recession in 2013, according to a new report from the Congressional Budget Office.

The Dow Jones industrial average fell into the red shortly after Obama's remarks. The blue chip index lost 0.1% to 12,798.11. The Nasdaq composite rose 0.4% to 2,907.01. And the S&P 500 went up 0.2% to 1,380.18.

Obama's position on raising taxes on wealthy Americans stands in stark opposition to the comments made earlier today by House Speaker John Boehner (R-Ohio). Boehner reiterated his belief that any tax hikes on the rich would stall small business and other parts of the U.S. economy.

Utilities this afternoon led the market lower. Duke Energy lost 1%. Souther Company gave up 0.3%. Exelon retreated 1.4%.